Horlicks

Group-1
Prachi 2
Ansu 4
Rohit 5
Darpan 7
Dhaval 12
Suchitra14
BRIEF HISTORY & BRAND
HORLICKS
 Brief History
 Flagship brand of GlaxoSmithKline (GSK)
 135-year-old brand
 12 billion Brand (1200 crore brand)
 Horlicks is the leading Health Food Drink in
India
 Developed this product keeping in mind the
need for mothers to provide healthier
nutritive snack to their children.
 Brand story
• From a drink that was supposed to promote a good night’s sleep to one that can
help children grow taller, stronger and sharper, Horlicks has come a long way.
Simultaneously, its brand image, too, has changed—from a fuddy-duddy, boring
health drink recommended by doctors to something that is nourishing, and
enjoyable.

• In 1992, as its market share grew, the brand extended itself to a new product—
Horlicks Biscuits. In 1994, it started singing the “micronutrient” story, followed by
its “smart nutrients” campaign in 1998.

• The brand underwent a massive transformation in 2003, when almost everything

about it changed—from the taste and flavor to the packaging. It also changed its
positioning: it was nourishing, yes, but also tasty.
 Brand story
• Another turning point came in 2005, when the brand released a clinical
study which claimed that children who consumed Horlicks were “taller,
stronger, and sharper” than those who did not. For the first time, the
brand tried to communicate with children, not just their mothers.

• Beginning a major advertising and marketing campaign along that

theme, new variants such as Horlicks Lite were launched, followed by
the revamp of Junior Horlicks in 2006. The latest variant is Women’s
Horlicks.

• They are constantly striving to ensure that the brand is relevant to

consumers. Product innovation is likely to remain a priority.
 Around the world
• Different Positioning in different countries.
• Western Countries
– Claimed to promote sleep when consumed at bed
time
• Hong Kong
– Marketed as café drink
– Served as both hot and cold drink as desired
 Around the world
• South East Asia
– Sold as milky-chocolate-flavoured disks in paper
packets, which were then eaten as candy.
– Sold in tin containers and 1.5 kg refill packs
• United Kingdom
– Sold in different flavors
– Rebranded itself for young consumers by
redesigning the packaging and publicizing its
consumption at a number of trendy London venues
 Around the world
• India
– Marketed as 'The Great Family Nourisher’
– Developed new products specifically for India
– Marketed as growth and alertness enhancing
product for children
– Made available in biscuit form
– Introduced Horlicks Lite targeting old customers
– Introduced Horlicks Nutribar
STP
Market Segmentation and Target Markets

• The health food drink segment is classified into two

categories - white liquid (Horlicks, Viva, Complan,
Milo) and brown liquid (chocolate based drinks:
Boost, Bournvita)

• Since its inception Horlicks targeted only children

between 6 to 16 years.

• Market leader for many years

 Saturation in market
Market Segmentation and Target Markets

• Gradually, the brand extended itself to products catering to a

different Target Audience
 Horlicks Lite variant for old
 Horlicks Junior
 Horlicks Women
 Horlicks Junior Biscuits
 Horlicks Nutribar

• Age-wise targeting

• Location-wise targeting
 Launched chocolate variant for North and West
 Vanilla and Honey for targeting others
 Positioning - Horlicks
• "Horlicks has always has been a mother and child
brand and the reason why it has always worked so
well is because the child relished the taste, and the
mother liked the nutritional values of the product.

• Therefore, the company should never ignore the

mother and only focus on the child. The mother is
like a gatekeeper, who allows the entry of the
product into the house because of its nutrition
values. The child is only the user."
 POSITIONING - HORLICKS

 Junior Horlicks – a 150 crore brand has positioned a product

exclusively for children between the ages of two and five

 Horlicks Lite for the elderly who often have a sugar problem

 For the youth GSK Consumer Healthcare has leveraged the

brand to venture into an entirely new product category —
energy cereal bars.

 Horlicks Nutribar positioned on the twin planks of health

and convenience
 Women’s Horlicks
• As recently as 2008, the company introduced Women’s
Horlicks, a malted health powder especially formulated for
women.

• Primarily targeted at women aged between 19 to 50 years,

this powder is available in two flavours – chocolate and
caramel.

• With no added sugar and low fat, Women’s Horlicks

promises to address the daily nutritional needs of the busy,
overstressed modern Indian woman.
 Perceptual Mapping
Various attributes are as follows:
1) PRICE
2) Taste
3) Quality
4) NUTRITION
5) Packing
 Price

LOW Nutrition

HORLICKS

LOW
 BRAND STRATEGIES

 In the late 1990s, market research showed that Horlicks

was seen “as a nourishing, but boring drink” and was
beginning to lose significance.

 So, in 2003, the brand was revamped: It was made tastier

and launched in two new flavours — vanilla and honey.

 The brand today talks to every member of the family

rather than the entire family
 BRANDING AND COMMUNICATION
STRATEGY

 In the early years, mothers were the sole target audience since
the product catered to the entire family. However, once pester
power became big in the 1990s, the Horlicks advertisements
started talking to children too.

 The change worked because it was also the time when mothers’
mindset was changing — they had become more indulgent and
let children drink what they liked, rather than imposing on them
a drink of their own choice.
 BRANDING AND COMMUNICATION STRATEGY

 Horlicks may not be a cheap product but it’s been

communicated as a value-for-money product. Parents today are
willing to spend more on nutrition for their children

 Compared to competitors, Horlicks is the best money

proposition and, moreover, the consumer gets value for the
money spent
 BRANDING AND COMMUNICATION
STRATEGY

 Communication message — `Now Proven - Taller, Stronger, Sharper.'

 Darsheel Safari – the new face of Horlicks

 Objective behind Darsheel

as a brand ambassador

 Theme of Horlicks
commercials is based on kids
with a positive attitude

Women’s Horlicks
 BRANDING AND
COMMUNICATION STRATEGIES
 Apart from the TVC, Horlicks is also embarking on print campaigns
focusing on school magazines and children-related publication and also
BTL Promotions.

 It would be supported by branded stalls and merchandise at the venues

for facilitating product sampling and visibility.
 Promotion
Apart from conventional strategies Horlicks organizes
 Horlicks Wizkid –
India’s largest interschool and cultural fiesta
 Sms campaign

Ice Age2 Ice Age3

Horlicks moving towards SOCIAL MEDIA MARKETING apart from
the TVC’s
TRADITIONAL MEDIA

SOCIAL MEDIA
PACKAGING
 Packaging & Designing innovation
The packaging in a plastic jar instead of a glass bottle is a way to make the
brand easier to handle and use.

The elements in the new design are: -

• The ‘Wave’ on the packaging shows the ‘activity’ of a person
• The visual of milk and wheat shows the nourishing capabilities of Horlicks
• Blue and orange colors have been part of the Horlicks family for many years
and strongly help to identify the brand
• The new logo also plays a role in reinforcing the trust and equity of the brand
among the consumers
• Junior Horlicks comes with a cute elephant design and is something every
child would like to play with.
• Women’s’ Horlicks comes in a curvy bottle with attractive red color
 Packaging

Horlicks malt powder in A jar, mug and a couple

jars from India (left) and of teaspoons of
Jamaica. Horlicks from the UK
Packaging
AD ANALYSIS
Horlicks Junior
 “Good advertising does not just
circulate information. It penetrates
the public mind with desires and
belief.“
 Horlicks: Supporting Attribute
• Horlicks is the name of a malted milk hot drink,
which is claimed to promote sleep when consumed
at bedtime. There is, however, no evidence that
malted milk directly promotes sleep, it may merely
stave off hunger pangs that could disturb sleep
thereby lead to a sounder sleep.
 Print Ad
• Segment: Children
• Lovable 3-D elephant shaped
bottle
• Two delicious flavors- vanilla and
chocolate
• Contains DHA, an essential fatty
acid.
• Launched in 2006.
 Analysis
• The evidence based message clearly defining the differential benefits of product usage.

• The handwritten font style of message giving the impressions of innocence.

• A cute preschool child with natural expressions of “bored” but looking quite fresh and
healthy.

• The Junior Horlicks bottle placed beside her.

• The background color mix, highlighting the products contents and baby in the visual.

• So, every thing in the add is contributing some message !

• The Ad idea is basically triggering the innate
need!
– Preschool children may be fussy in consuming food and may
often refuse or waste food that is nutritionally good for
them. This may cause certain dietary gaps in the diet of
preschool children.

– Childhood growth velocity curves demonstrate clearly that

the dramatic periods of need are within the first 3 years of
life and pre schoolers require a relative higher nutrient
dense diet as compare to Adults.
 Message
• The Ad idea is basically offering solution for
the need!
– New Junior Horlicks 1-2-3TM provides essential
nutrition and when taken as part of a healthy diet,
helps complete A to Z nutrition for preschool kids.
Ex. DHA
 Print Ad Message
• Thanks to years of relentless research, this is the first time in
India that a health drink for pre-school kids has DHA added to
it. An increasing body of evidence indicates that DHA is critical
to aid brain development in children.

• So, Go ahead, give your little champion all the nutrition and
fun with DHA fortified Junior Horlicks 1-2-3TM
 Segmentation/Targeting
• People who are conscious about their kids
nutrition and better health.

• Children aged less than 5 year (pre-Schoolers)

– Dramatic period of nutritional need
– More nutritional requirements compared to adults
– DHA, a fatty acid, the basic need for brain cells
development
– Require A-Z nutrition to remain healthy
 Product Repositioning
• Horlicks is already well established nutritional supplement

• The market response has identified the customer loyalty

• Repositioned by adding few attributes and diversifying the market

segment.

• Repositioned Product

– Additional ingredients
– Specialized improved packaging
– Specialized segment
– Better brand awareness by need and consciousness
 Learning
• Unconditioned Stimulus
– The Horlicks is a well established brand symbol of international fame. Thus the
previously acquired consumers perception of Horlicks will lead to Unconditioned
stimulus (Classical Conditioning).

• Cognitive Associative learning

– Firstly Horlicks introduction influenced customers through conditioned learning.
– Junior Horlicks influenced customers through Unconditioned learning.
– Thus the Junior Horlicks ad can be viewed as the “Cognitive Associative
Learning”
• Repetition
– Frequent ad repetition of Horlicks prevents forgetting the differential edge,
benefits and uniqueness of the product.
 Learning
• Cognitive Element: Consumer thinking and problem solving
• (Mental Processing of information: Left brain side; Analytical, logical,
Knowledge based, practically)

Problem faced Poor Health and nutritional

Deficiencies in kids

Information Searching What should be added to diet

Evaluation Is this offer complete nutrition

Decision Making We should try Junior Horlicks

Solution Junior Horlicks satisfy the claim of Ad

COMPETITOR ANALYSIS
COMPETITOR
ANALYSIS
 MARKET SHARE

18%

HORLICKS
COMPLAN
15% 50% BOURNVIT
A
OTHERS

17%

The chart shows that Horlicks is the undisputed market Leader

 HORLICKS
“Market Leader”

• Horlicks + Horlicks Junior = 57% market share

• Total HFD Market: Rs 1200 crore
– White Malted category: 60%

49 %
BRAND SALES:

• Leader in south and East

markets
• North + West = 6% sales 45 %
BRAND MANUFACTURER BRAND PRODUCT
EXTENSION AVAILABILITY

GlaxoSmithKline Biscuit, Energy > 5 lacs retail

HealthCare bar & ChilledMilk outlets

Biscuit & Muesli >7 lac retail

HEINZ outlets

CADBURY Bourneville Dark ~ 4 lac retail

Chocolate outlet
 TV COMMERCIALS

COMPLAN BOURNVITA
BRAND TARGET USP CLAIM

1. Children "Children have become taller,

2. Women stronger and sharper. The
3. Pregnant 23 essential nutrients Horlicks challenge - now
Women proven… “
4. Elders

23 essential nutrients
1. Growing in accurate proportion/ Grow faster with Complan
Children Complete meal in a
drink

1. Children Choco Taste with the Real Achievers who have

2. Teenagers power of Calcium grown up on Bourn Vita
 CELEBRITY ENDORSEMENT & BRAND
BRAND PERSONALITY

Amitabh Bachhan (1960 - 70s), Moon Moon Sen with

daughters Raima and Riya (1980s); Vishwanath Anand

Brand not perceived as “Modern & contemporary”,

loss in brand relevance amongst children.
Brand re-launch (2003) :
Children were targeted directly!
BRAND CELEBRITY ENDORSEMENT & BRAND
PERSONALITY
Always targeted “School” going Children and Mothers

 I am a complan boy/ complan girl  “grow twice as fast”

More informative Ads (5 brain chargers in 23 vital nutrients)

Memory Enhancer: mother & child Ad

Always focused on Kids with mantra : “Health + Taste”

“Goodness that grows with you” , “Brought up right,

Bournvita Bright”, “Tan ki Shakti, Man ki Shakti . . .
Bournvita” , “Do you have the Bournvita confidence” with
Bournvita Quiz, “Nature + Science” unique combination.
Featured in Pogo cartoon channel, primarily targeting kids!
 CONTROVERSIES

V/S

HORLICKS has very cleverly positioned itself against

COMPLAN in terms of
• Price
• Quality
• Attributes
Consumer Behavior Analysis For
Horlicks
 Consumer Responses
• Child: "Horlicks is an old person's drink and I
drink it only because mama forces me to do
so."
• Mother: "My kids drink whatever they feel like,
and I wish they would ask for Horlicks."
 Consumer Behavior Analysis For Horlicks

• GLAXO SMITHKLINE'S (GSK) consumer research

findings clearly pointed out that the Horlicks users
wanted a change.
• They wanted a more spirited and happening drink in
interesting flavors, instead of a drab nourishment
drink.
• The 130-year-old Horlicks was beginning to lose its
sheen and with its growth being flat in the last one
year, GSK felt that it was time to give its Rs 1000-
crore brand a facelift.
 Consumer Behavior Analysis For Horlicks

• They participated in the research exercise and

literally peeped into the kitchen shelves to find out
what the consumers were looking for, as the
expected growth was not happening for Horlicks.
• The new Horlicks, whose focus is on flavors, with its
nutritional constituents remaining the same, is the
tastiest ever Horlicks.
• "In fact, Chocolate Horlicks has been rated as the
best chocolate drink in milk in the blind consumer
research.“
 Consumer Behavior Analysis For Horlicks
• While the product packaging has been designed by Tata
Elxsi, the pack designing has been done by J. Walter
Thomson.
• They claims that the consumer research findings show the
new avatar of Horlicks has the highest shelf appeal and
maximum visibility.
• “Their consumer research exercise pointed out that pester
power played a major role in buying decisions.
• From a HFD product like ours to white-goods such as a
computer or a TV, the children play a major role at the
entry level of any product."
 Consumer Behavior Analysis For Horlicks
• "The mothers today are no longer epitomes of patience who
would do anything to get their children to have healthy and
nutritious food.
• Today's mothers prefer to give their children what they like
instead of wasting time and energy to force their children to have
a health drink or a health food.“
• The company's communication strategy, therefore, focuses on
children who have an attitude - an attitude, which is positive,
livewire and spirited.
• This has been projected in its TVC, which will be aired across all
channels and would also be backed by an extensive print and
outdoor campaign.
 RECOMMENDATIONS
(our views)
• Go Rural
– Sachet packets

• Promotional activities for Children

• Sponsor some Sport’s Competition

• Use better advertisement

– Avoid using Celebrities to target audiences
– Strengthen brand: Women Horlicks only health drink in India with all
micronutrients suggested by WHO

• Keep innovating
 Recommendation
• To position Horlicks as a drink for only the young
is both a sacrilege and shortsighted. It has to be
given the status that is naturally its own — a drink
for all ages.
• Position it as
“Horlicks belongs to all ages. It can make
youngsters stronger and bigger, and it
can make the old feel young again.”
 Some crazy idea
• “It can be mixed with all kinds of
things and diluted according to
whatever be the recipe but the best
way to have it is straight out of the
can and licking up the drops that
trickle down the side so that not a
single one is wasted. “
 Horlicks in Maslow’s Heirarchy
• A brand moves with time from top level (self
actualization) to lowest level (basic needs) of
Maslow’s hierarchy. There might be many factors that
affect the movement from top level to the basic level.
• Company pricing strategy, competitors in industry,
distribution, disposable income of consumers and life
style.
• According to literature, consumer behavior is divided
into three sub categories; consumption behaviour,
purchase behaviour and attitude perception. 
 CHALLENGES
• Marketers should not get infected by Competition Myopia, wherein
the marketers view the competitors too narrowly. In this case,
Horlicks Nutri-Bar may see itself as the pioneer in cereal bars
category, but they are not the only one in ready-to-eat hunger
satisfying food class.
• In this context or category, they have a major competitor, namely
Mars Snickers, which has a positioning similar to Horlicks Nutri-Bar,
though it comes in confectionery category. Horlicks Nutri-Bar is a
recently launched product, while Snickers is an established player.
• Horlicks has to identify its competitors, and strategize accordingly
to highlight its POD (Point Of Difference) and gain SCA (Sustainable
Competitive Advantage).
 CHALLENGE
PROBLEM: LOWER DISTRIBUTION REACH

• In an aggressive ‘Go to Market’ approach, it created

a second layer of distributors in the smaller towns to
supplement the existing chain of around 500 big
distributors. Most of these 4,000 sub-distributors
were appointed in the eastern and southern parts of
the country. The current market reach of GSK
Consumer Healthcare is about 25 percent and the
goal is to reach 40 percent.
THANK YOU